7/26/2019 porter's 5 forces aviation sector in india
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2.15 PORTERS FIVE FORCES ANALYSIS
Competitive Rivalry
Competition among major players is very high, especially in LCCs
(Low cost carrier)
section because the airlines compete for the middle income group
customers and
passengers of air-conditioning segment of railways. his group
has low brand loyalty
and is highly price sensitive
Competition might intensify further in LCC segment with !ir !sia
"ndia being
granted #$C!s operator license
Threat o Ne! E"tra"t#
% hreat remains low because of the nature of the industry
(&egulatory hurdles, Capital-
intensive)
% !ir !sia "ndia has been granted #$C! approval ('rice ar)
S$%#tit$te Pro&$'t#
% hreat remains low in this sector also as no other means of
transport is as swift, and
convenient as airlines
% "t saves time
(ar)ai"i") Po!er o S$pplier#
% argaining power of suppliers remain high as there are only few
fuel and aircraft suppliers
% alent pool of pilots, engineers and other staff is also
limited
(ar)ai"i") Po!er o C$#tomer#
% argaining power of customers remains low as the demand for low
cost air travel is *uite
high
% he costs of switching airplanes and services offered hardly
differ with each other.
